{"id":22202,"date":"2021-03-15T17:49:53","date_gmt":"2021-03-15T16:49:53","guid":{"rendered":"https:\/\/coinfomania.com\/?p=22202"},"modified":"2024-04-25T11:08:18","modified_gmt":"2024-04-25T10:08:18","slug":"australia-considers-central-bank-digital-currency","status":"publish","type":"post","link":"https:\/\/coinfomania.com\/australia-considers-central-bank-digital-currency\/","title":{"rendered":"Australia Makes U-turn: Considers Issuing A Central Bank Digital Currency"},"content":{"rendered":"

A few months ago after saying it has no plans to issue a Central Bank Digital Currency (CBDC), the Reserve Bank of Australia (RBA) is exploring the possibilities of issuing a national digital currency.\u00a0<\/span><\/p>\n

\u201cThe RBA is researching the technologies and policy implications of a potential wholesale central bank digital currency,\u201d Philip Lowe, the governor of the apex bank noted today in a Daily Mail\u00a0<\/span>report<\/span><\/a>.\u00a0<\/span><\/p>\n

According to Lowe, financial institutions in Australia could conduct transactions using CBDCs, instead of conventional banknotes in the future.\u00a0<\/span><\/p>\n

He added that the apex bank\u2019s innovation lab is already working on a concept that will involve using the tech that powers cryptocurrencies – blockchain, in the development of its CBDC.\u00a0<\/span>Lowe promised to share more insights about the bank\u2019s CBDC plans in the future.\u00a0<\/span><\/p>\n

Central Banks Interests\u2019 In CBDC Spikes\u00a0<\/span><\/h2>\n

In the past years, central banks have been conducting experiments to develop the digital-version of their official currencies.\u00a0<\/span><\/p>\n

This move is triggered by the increasing demand for digital currencies, as popular cryptocurrencies like Bitcoin (BTC) and Ether (ETH) continue to go mainstream, and fiats are seen as obsolete forms of payments.\u00a0<\/span><\/p>\n

While developing CBDCs has been a major topic since 2019, nations picked interest in it early last year during the peak of the coronavirus (COVID-19) pandemic.\u00a0<\/span><\/p>\n

Reports had it that the virus could be transmitted through the use of fiat currencies, which sparked more interest in CBDC from central banks.\u00a0<\/span><\/p>\n

According to a survey conducted by the Bank of International Settlement (BIS), at least 80% of central banks globally are weighing the pros and cons of issuing a CBDC backed by their national currency.\u00a0<\/span><\/p>\n

However, the RBA was not included among the banks considering launching a CBDC.\u00a0<\/span><\/p>\n

Tony Richards, the Head of Payments Policy at the RBA\u00a0<\/span>confirmed<\/span><\/a>\u00a0in November that Australia was not planning to issue a CBDC, adding that the bank is more focussed on blockchain than creating a \u2018digital alternative to [its] cash.\u2019\u00a0\u00a0<\/span><\/p>\n

Lowe\u2019s push for a CBDC in Australia comes as cryptocurrency goes mainstream, with more institutional investors getting involved.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

A few months ago after saying it has no plans to issue a Central Bank Digital Currency (CBDC), the Reserve […]<\/p>\n","protected":false},"author":7,"featured_media":19427,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1808,1807,5],"tags":[91],"ppma_author":[1767],"class_list":["post-22202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-exchange-news","category-regulation-news","category-crypto-news","tag-cbdc"],"acf":[],"authors":[{"term_id":1767,"user_id":7,"is_guest":0,"slug":"lele-jima","display_name":"Lele Jima","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/3e6e9f4e4f2610f75379da5c65c5daf9?s=96&r=g","first_name":"Lele","twitter":"https:\/\/twitter.com\/jimalele","instagram":"","linkedin":"","user_url":"","last_name":"Jima","facebook":"","description":"Lele Jima is a writer by heart and a crypto enthusiast. He has been a writer for over two years. So far, he has written on topics that cut across various industries ranging from fintech to ICT. He hopes his words bring the desired change we crave for, which is to make the world a better place. His pen is his might, and the sky, his starting point."}],"_links":{"self":[{"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/posts\/22202"}],"collection":[{"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/comments?post=22202"}],"version-history":[{"count":1,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/posts\/22202\/revisions"}],"predecessor-version":[{"id":313223,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/posts\/22202\/revisions\/313223"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/media\/19427"}],"wp:attachment":[{"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/media?parent=22202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/categories?post=22202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/tags?post=22202"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/coinfomania.com\/wp-json\/wp\/v2\/ppma_author?post=22202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}